Elecon Engineering Company Limited, a major industrial gear solutions provider in Asia, announced its Q2 FY25 financial results, reporting a mixed performance. The company saw growth in revenue but a slight decline in profits during the quarter ended September 30, 2024.
Key Highlights:
- Revenue: The company’s revenue grew by 4.8% YoY to ₹508 crore in Q2 FY25, up from ₹485 crore in Q2 FY24. For H1 FY25, the revenue was ₹901 crore, showing a marginal increase of 0.1% from ₹899 crore in H1 FY24.
- EBITDA: Elecon reported a decline in EBITDA, falling by 5.4% YoY to ₹112 crore in Q2 FY25 from ₹119 crore in the same quarter last year. The EBITDA for H1 FY25 stood at ₹205 crore, down by 6.4% from ₹219 crore in H1 FY24.
- Profit After Tax (PAT): The company’s PAT decreased by 1% YoY to ₹88 crore in Q2 FY25 compared to ₹89 crore in Q2 FY24. For H1 FY25, PAT slightly declined by 0.3% to ₹161 crore from ₹162 crore in H1 FY24.
- EBITDA Margin: EBITDA margin for Q2 FY25 stood at 22.1%, dropping by 239 basis points (bps) from 24.5% in Q2 FY24. The EBITDA margin for H1 FY25 was 22.7%, down 159 bps from 24.3% in H1 FY24.
- PAT Margin: The PAT margin for Q2 FY25 declined by 100 bps to 17.3%, compared to 18.3% in Q2 FY24. For H1 FY25, the PAT margin was 17.9%, down 7 bps from 18.0% in H1 FY24.
Elecon Engineering showed steady revenue growth but faced pressure on profitability due to declining margins. The YoY increase in revenue was offset by the drop in EBITDA and PAT, indicating challenges in managing costs and profitability in the face of market conditions.
